The Candy Crush Saga coconut wheel booster is a very powerful booster with many different uses. To use it you need to swap it with another candy. You can't move it except by removing the candies underneath to make it drop. It can ONLY be swapped with a candy. You can't move it across ingredients or licorice.
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The video below shows what happens when you swap the coconut wheel with a normal candy.

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Here's how to make a wrapped candy. To make the L shape with 5 candies. First get your candies into the shape below, You only need one candy in the position shown.
How to make a wrap from a T shape. Look carefully for the chance to get your candies into the position shown, then move the top yellow down to form the T shape.
You can also have the T laying on it's side.